THE ALTA ECOSYSTEM
The Alta ecosystem is a group of related entities that work together to drive value back to investors in the Alta funds. All entities are focused exclusively on the cannabis industry, and one or more of the funds' General Partners has a majority stake in each company within the ecosystem. Through the funds' relationship with Alta, the General Partners will have first look at all new financing requests and the first chance at underwriting the most valuable transactions. The funds' relationship with CannaMLS gives the General Partners access to over $4.5 billion in existing real estate listings as well as first opportunity to review and solicit all new assets added to the marketplace.
With strong intracompany agreements that allow for shared data, deal flow, and market intelligence, the valuable insights provided by each of the platforms will significantly influence the General Partners' investment decisions, allowing them to intelligently deploy investor capital to secure higher returns.
THE ALTA ECOSYSTEM VALUE FLOW CHART
THE ALTA INVESTMENT FUNDS
The Alta funds are part of the broader Alta Ecosystem, which provides robust transaction data, market intelligence, and deal flow. These insights allow the GP to more intelligently deploy investor capital while simultaneously ensuring we see the strongest deals first. The two funds complement each other and allow investors to place capital in one investment vehicle or both, based on the different investment theses, potential returns and risk profiles.
ALTA REAL ESTATE FUND
Alta Real Estate LP (“Alta RE”) is a US$ 20 MM fund seeking an additional US $100 MM to capture high-value cannabis real estate opportunities across the United States, in markets where cannabis has been legalized for medical or adult use. Alta RE focuses on real estate investments in partnership with established, creditworthy cannabis operators, leveraging their need for swift non-dilutive financing to secure optimal longterm leases with high returns. Alta RE has acquired three properties in California with a blended cap rate of 12.1%.
Alta RE has an exclusive partnership with CannaMLS, giving the fund first look at over $4.5 billion in cannabis real estate opportunities nationally.
Standard lease terms yield a 12% cash on cash return to investors with a 3% annual increase for 7 to 10 years.
Federal legalization will allow the fund to mortgage its portfolio and reinvest in new opportunities or pay additional dividends to investors.
ALTA DEBT FUND
The Alta Debt Fund LP (“Alta Debt”) is raising US $100 MM to solve the capital needs of licensed cannabis companies by providing asset-backed, senior secured loans with a maximum real estate Loan to Value (“LTV”) of 67%. Acceptable use of proceeds from Alta Debt loans will include refinancing existing debt, working capital, leverage buyouts, construction / TI's, and other direct corporate growth initiatives. Alta Debt loans have a target IRR of 15-20% including structuring fees, admin fees, step up interests, and a strong syndication strategy.
Alta Debt delivers equity-level returns with downside protection through a robust collateral package, resulting in attractive risk profiles.
Provides non-dilutive financing options to cannabis companies that prefer to hold onto their strategic assets.
Will receive first look at all new financing requests on the Alta platform and will be the lead arranger on syndicated loans with other registered institutional lenders.